Flanagan orders review of Hazel Park School District's finances

Jun. 20, 2013

Mike Flanagan / Detroit Free Press

Written by

Detroit Free Press Education Writer

State Superintendent Mike Flanagan has ordered a preliminary review of the finances of the Hazel Park School District.

Flanagan, in a letter sent to Hazel Park Superintendent James Meisinger on Wednesday, said heís concerned that the districtís deficit will grow from $1.5 million at the end of June 2012 to a projected $3.3 million at the end of this month.

Other concerns: Flanagan said the district originally projected being out of deficit by June 30, 2014, but now says it will take another year; and the district is estimating a conservative loss of only 37 students when the trend in recent years has been far higher. For instance, the district lost nearly 500 students from 2012 to 2013.

A preliminary review is the first of several steps that could lead Gov. Rick Snyder to declare a financial emergency in the district. Such a declaration could lead to the appointment of an emergency manager, a consent agreement, a neutral evaluation process or Chapter 9 bankruptcy.